Alexander & Baldwin, Inc. is buying the Oahu land assets of Kaneohe Ranch Co. and Harold K.L. Castle Foundation, including most of Kailua’s retail district, for $373 million. The transactions are expected to close in late December 2013.

The sale includes two parts. Kaneohe Ranch is selling its Oahu land holdings for $260 million and will continue to own and manage some Oahu properties as well as its mainland land assets, the company said. At the same time the Harold K.L. Castle Foundation will sell all of its properties to A&B.

The total sales price for both the Kaneohe Ranch and Harold K.L. Castle Foundation land assets is $373 million.

The combined sale includes 36.4 acres in downtown Kailua.

“I don’t believe we could have found a better buyer than Alexander & Baldwin,” said Mitch D’Olier, Kaneohe Ranch president and CEO, and president of the Harold K.L. Castle Foundation. “A&B is such a respected kamaaina business institution with a similar history to that of the Castle family. They both grew from island roots with a strong understanding of Island culture and a true, long-term commitment to improving Hawaii. I know that Chairman and Chief Executive Officer Stanley Kuriyama, President and Chief Operating Officer Christopher Benjamin and their team will be good stewards of this property, its businesses and tenants, because I’ve witnessed their careful and sensitive approach over many years.”

A&B said it will fund the purchase with proceeds from the planned sale of several commercial properties it owns on the Mainland.

“With this purchase, we will be acquiring one of the state’s largest and finest retail portfolios, in an excellent market. This is an opportunity that rarely arises in Hawaii, and our decision to purchase is a reflection of our confidence in and commitment to Hawaii’s future,” said Stanley M. Kuriyama, A&B chairman and chief executive officer. “This acquisition dramatically accelerates our strategy of migrating our Mainland portfolio to Hawaii, diversifies our holdings with a major investment in the Windward side of Oahu, and improves the quality of earnings from our overall commercial portfolio. We look forward to working with the Kailua community in meeting the community’s needs and building upon the successes achieved by Kaneohe Ranch and HKL Castle Foundation.”

“We take a long-term perspective on our community development efforts and strive to work closely with communities to meet their changing needs,” said Christopher J. Benjamin, A&B president and chief operating officer. “Kailua is a thriving and vibrant community, and we intend to partner with the community in maintaining the livability, desirability and beauty of Kailua town.”